Group Members: Carmen Blanco, Derek Wolfe, Jeff Davidson, Lauren Hernandez, Marcel Lee
Process Classification Framework under the Process of Managing Customer Credit
8.2.1 Process customer credit (10742) 8.2.1.1 Establish credit policies (10789) 8.2.1.2 Analyze/approve new account applications (10790) 8.2.1.3 Review existing accounts (10791) 8.2.1.4 Produce credit/collection reports (10792) 8.2.1.5 Reinstate or suspend accounts based on credit policies (10793)
Fargo Bank
Background Fargo Bank is located in Orlando, FL. Its president, Morgan Wells, would like to have an Accounting Information System (AIS) to streamline the credit application process for individuals and businesses of all sizes. The objective of the new implementation is to grow business in size and profitability while focusing on providing exceptional customer service. The new Accounting Information System is an integrated service where new and current credit lines can be processed from contract initation to the final payment in one database. This capability provides for the seamless tracking sales and payments. Because the credit card deposits show up in the bank as well, the reconciliation process is much simpler as well. This process focuses on the credit application operations, which consists of individual and business credit cards/lines of credit.
Credit Management Narrative
The Director of Finance establishes credit policy by setting the credit amount limits and interest rate grid for each customer based on customer's charecteristics (individuals or small business, US or non US, FICO scores and income). The director of finance enters credit policy into the system so that it would be available to all bank customer representatives. The system then generates and posts an application, for print or online, with the required fields, left blank, to be completed during the application process.
A customer fills out a credit application online or gives relevant information to a customer service representative via phone or in person. The customer representative inputs new applications into the system. The customer service representative sends a request to the credit agency for the customer's credit history. The credit agency promptly responds with the credit information. The customer's credit information is entered into the system. Based on that information, the system determines if the customer is approved or not approved. If the customer is not approved, the customer representative notifies the customer and the process ends. If the customer has been approved, the customer representative informs the customer. The customer representative sends the customer an approval confirmation and asks the client if he or she would like to proceed with the opening, or extension of the line of credit. If the customer decides to proceed, the customer service representative enters the acceptance into the system. The system will then generate a contract. Once the customer signs the contract, the employee scans the contract with the customer's signature and accompanying documents, and uploads the client file in the storage system. If the client does not sign the contract, the application information and the refusal reason are stored for marketing purposes and the process is completed.
The director of finance reviews the list of existing accounts for accurate input into the system, by the customer representative, and to ensure Fargo policies are being followed. The Director of Finance reviews Accounts Receivable reports on a monthly basis. The Director of Finance runs queries and credit collection reports in the system to identify delinquent customers. If a customer is delinquent, the director of finance adds the account to the list of delinquent customers, which is sent to the customer service representative. The customer service representation then calls the customers for delinquent payment, payment plan arrangement or customer's address verification to send a letter. The customer service representative enters customer's response into the system. If the delinquent customer does not pay on his or her account within 30 days, the system generates a letter to the client for payment request. If the customer does not pay within 45 days of the delinquent payment letter request, the account is suspended in the system. If the owner pays upon the letter receipt, the customer representative reviews customer's information and makes necessary business arrangements and adjustments.
........................................................................................................................................................................................................................................................................ E&A TABLE OF THE CREDIT APPROVAL PROCESS
Group Members: Carmen Blanco, Derek Wolfe, Jeff Davidson, Lauren Hernandez, Marcel Lee
Process Classification Framework under the Process of Managing Customer Credit
8.2.1 Process customer credit (10742)
8.2.1.1 Establish credit policies (10789)
8.2.1.2 Analyze/approve new account applications (10790)
8.2.1.3 Review existing accounts (10791)
8.2.1.4 Produce credit/collection reports (10792)
8.2.1.5 Reinstate or suspend accounts based on credit policies (10793)
Fargo Bank
Background
Fargo Bank is located in Orlando, FL. Its president, Morgan Wells, would like to have an Accounting Information System (AIS) to streamline the credit application process for individuals and businesses of all sizes. The objective of the new implementation is to grow business in size and profitability while focusing on providing exceptional customer service. The new Accounting Information System is an integrated service where new and current credit lines can be processed from contract initation to the final payment in one database. This capability provides for the seamless tracking sales and payments. Because the credit card deposits show up in the bank as well, the reconciliation process is much simpler as well. This process focuses on the credit application operations, which consists of individual and business credit cards/lines of credit.
Credit Management Narrative
The Director of Finance establishes credit policy by setting the credit amount limits and interest rate grid for each customer based on customer's charecteristics (individuals or small business, US or non US, FICO scores and income). The director of finance enters credit policy into the system so that it would be available to all bank customer representatives. The system then generates and posts an application, for print or online, with the required fields, left blank, to be completed during the application process.
A customer fills out a credit application online or gives relevant information to a customer service representative via phone or in person. The customer representative inputs new applications into the system. The customer service representative sends a request to the credit agency for the customer's credit history. The credit agency promptly responds with the credit information. The customer's credit information is entered into the system. Based on that information, the system determines if the customer is approved or not approved. If the customer is not approved, the customer representative notifies the customer and the process ends. If the customer has been approved, the customer representative informs the customer. The customer representative sends the customer an approval confirmation and asks the client if he or she would like to proceed with the opening, or extension of the line of credit. If the customer decides to proceed, the customer service representative enters the acceptance into the system. The system will then generate a contract. Once the customer signs the contract, the employee scans the contract with the customer's signature and accompanying documents, and uploads the client file in the storage system. If the client does not sign the contract, the application information and the refusal reason are stored for marketing purposes and the process is completed.
The director of finance reviews the list of existing accounts for accurate input into the system, by the customer representative, and to ensure Fargo policies are being followed. The Director of Finance reviews Accounts Receivable reports on a monthly basis. The Director of Finance runs queries and credit collection reports in the system to identify delinquent customers. If a customer is delinquent, the director of finance adds the account to the list of delinquent customers, which is sent to the customer service representative. The customer service representation then calls the customers for delinquent payment, payment plan arrangement or customer's address verification to send a letter. The customer service representative enters customer's response into the system. If the delinquent customer does not pay on his or her account within 30 days, the system generates a letter to the client for payment request. If the customer does not pay within 45 days of the delinquent payment letter request, the account is suspended in the system. If the owner pays upon the letter receipt, the customer representative reviews customer's information and makes necessary business arrangements and adjustments.
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E&A TABLE OF THE CREDIT APPROVAL PROCESS
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